Bitcoin declined for the eighth consecutive day on Tuesday as the crypto markets crash continued. BTC fell into the $20,000 area for the first time since December 2020, while ETH hit $1,000 and also posted a multi-year low.

Bitcoin

BTC traded lower for the eighth straight day, with Monday’s drop sending prices to their lowest levels since December 2020.

The world’s largest crypto token fell to an intraday low of $20,950.82 in today’s session after hitting yesterday’s low of $23,607.69.

This latest drop comes as traders brace for tomorrow’s FOMC meeting, where some expect the Federal Reserve to hike interest rates.

Bitcoin, Ethereum Technical Analysis: BTC falls into $20,000 area as sell-off widens
BTC/USD daily chart

As US inflation continues to peak, many now see it necessary for the Fed to make further policy changes to combat rising consumer prices.

Technically, the 14-day RSI is now at its lowest level in over five years at 23.77.

Many believe we are yet to find a price floor after the recent falls in value, with some suggesting that prices may end up near $19,000.

ether

Ethereum fell below $1,100 on Tuesday as the world’s second-biggest cryptocurrency’s price decline worsened.

After hitting a high of $1,269.76 earlier in the week, ETH/USD fell to an intraday low of $1,094.70 earlier in the day.

This drop saw ETH land at its lowest level since January 2021, when prices surged to a low of $748.

Bitcoin, Ethereum Technical Analysis: BTC falls into $20,000 area as sell-off widens
ETH/USD daily chart

As a result of this recent price drop, ETH broke out of its support at $1,275 and now appears to be finding support around $800.

Bulls are likely to try to avoid this and are supported by the fact that the 14-day RSI is heavily oversold and not much bearish volume left.

Relative strength is currently 21, the lowest since March 2020, during the first peak of the coronavirus pandemic.

Will ETH fall below $1,000 in the coming week? Leave your thoughts in the comments below.

Eliman Damell

Eliman brings an eclectic perspective to market analysis, having worked as a broker director, retail educator, and market commentator for crypto, stocks, and forex.




photo credit: Shutterstock, Pixabay, WikiCommons

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